0Price (per unit)$200AMCATCCLinBDQuantity(units per week)Market PriceP = MRFigure 23.5Catawissa Catfish of Catawissa, PA is a catfish farm that sells its fish in a perfectly competitive market, it is the average firm in thismarket, and the above graph shows its revenue and cost curves.If the market price is $200 per bushel of catfish, which of the following is not true for Catawissa Catfish? OOThe price is a reflection of the highest-valued good that could have been produced with the resources the firmused for the last unit it produced.OThe firm should leave this market in an effort to earn economic profits.OThe firm is using the fewest resources possible to produce each unit of output.The firm is practicing marginal cost pricing.

Business economics is the study and analysis of commercial barriers affecting businesses using…

Price (per unit) B HL $200 MC Quantity (units per week) ATC D Market Price P = MR Figure 23.5 Catawissa Catfish of Catawissa, PA is a catfish farm that sells its fish in a perfectly competitive market, it is the average firm in this market, and the above graph shows its revenue and cost curves. If the market price is $200 per bushel of catfish, which of the following is not true for Catawissa Catfish?

Price (per unit) B HL $200 MC Quantity (units per week) ATC D Market Price P = MR Figure 23.5 Catawissa Catfish of Catawissa, PA is a catfish farm that sells its fish in a perfectly competitive market, it is the average firm in this market, and the above graph shows its revenue and cost curves. If the market price is $200 per bushel of catfish, which of the following is not true for Catawissa Catfish?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Answer the following, providing a graphical illustration along with your answer where necessary:a) What is the profit maximising condition in a market with perfect competition?b) Explain what is meant by abnormal profit? What is the adjustment process from short-runabnormal profit to long-run equilibrium in a perfectly competitive market?c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A’spayoff/Firm B’s payoff)Firm BFirm APrice £2 Price £1Price £2 £20,000/£20,000 £10,000/£24,000Price £1 £24,000/£10,000 £12,000/£12,000Assume you are the pricing manager at Firm A;i) What is your payoff for a ‘maximin’ strategy?ii) What is your payoff for a ‘maximax’ strategy?iii) Does a dominant strategy exist within this prisoners’ dilemma?
Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her minimum average variable cost is $8.50, her minimum average fixed cost is $1, and her minimum average total cost is $14.80. In terms of shortrun decisions, what is the lowest market price below which, Carmen should shut down to minimize her losses? Explain
Use the following data to analyze the condition when the product price is set at $56. A. How much would be the total revenue? B. What will be the profit-maximizing or loss-minimizing output? C. How much would be the total cost?
The graph to the right depicts the daily total cost and total revenue curves for a firm. If the firm chooses the profit maximizing level of output, it will earn a profit of $ per day. (Round your answer to the nearest penny.) Revenue and Costs (3) 1,180 1910 624 480 48 91 118 Output (per day) TR a a G
Lisa lawn company (LLC) is a lawn mowing business in a perfectly competitive market for lawn moving services. The following tables set out Lisa's costs Quantity(lawn per hour) Total Cost(dollars per lawn) 0 $30 1 $40 2 $55 3 $75 4 $100 5 $130 6 $165 A. If the market price is $30 per lawn, How many lawns per hour does Lisa's LLC now? B. If the market price is 30 per lawn, What is Lisa"s profit in the short run? C. if the market price falls to $20 per lawn, how many lawns per hour does Lisa's LLC now? D. if the market price falls to $20 per lawn, what is Lisa's profit in the short run? E. At What market price will Lisa shut down?
The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely) competitive industry.
The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for snapback hats. COSTS (Dollars) 100 100 80 90 80 20 70 70 HD 50 40 30 20 0 11 D 10 O MC Price (Dollars per snapback) 15 15 20 25 55 70 85 201 ATC 0 D AVC O 50 60 70 80 QUANTITY (Thousands of snapbacks) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. □ Quantity (Snapbacks) BO 100 ▼ On the following graph, use the orange points (square symbol) to…
Nathan runs a rare book store. Last year, he earned $35,000 in revenue and had explicit costs of $8,000. Nathan could have made $35,000 driving a boat in a water ski show and received an additional $5,000 if he had used the company's inputs in a different way. Calculate Nathan's economic profit. $
Now suppose there are 100 firms in this industry, all with identical cost schedules. Fill inthe market quantity supplied at each price in the market.
Giocattolo is a profit-maximizing firm producing toy cars, which it can produce and sell in its home country, Italy, and abroad in Spain. The average cost (AC) curve on the following graph represents Giocattolo's cost of producing toy cars within one factory, whether in Italy or in Spain. COST (Dollars per toy car) 20 18 16 14 12 10 8 4 2 0 0 10 20 30 40 50 60 70 80 QUANTITY (Thousands of toy cars) AC 90 100 Suppose that at the current market price of toy cars, the demand for Giocattolo's product is 10,000 toy cars per year in Italy and 20,000 toy cars per year in Spain. (Hint: Select each point on the previous graph to see its coordinates.) Based on Giocattolo's average cost curve, within one factory it can produce 20,000 toy cars at $ per toy car, and produce the total of 30,000 toy cars at $ per toy car. per car, produce 10,000 toy cars at
LOOKING FOR last two: d. How should this firm change its output to maximize profit if fixed cost changes from 3200 to 3800 (ie. TC=3800+50Q+2Q^2) e. How should firm change its output if VARIABLE cost changes (ex. TC=3200+80Q+2Q^2)
Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.